Binance, one of the world’s largest cryptocurrency exchange is launching a fiat-to-crypto exchange for customers in Europe and the United Kingdom. The exchange was launched on the island of Jersey, a self-governing dependency of the United Kingdom.
Right now, users can trade Bitcoin (BTC) and Ethereum (ETH) against Euro (EUR) and British Pound (GBP). Hosted on www.binance.je, it is separate from Binance.com. Binance is giving away 20 EUR for the first 5,000 users who successfully sign up and complete Account Verification (KYC).
After setting up a branch in Malta, Binance announced its expansion to Jersey back in June 2018. Binance had announced that it would create 40 new jobs in Jersey.
Back then, Binance CEO Changpeng Zhao said:
We have chosen Jersey to be the next big step in our global expansion strategy for its clear and pro-crypto investment and regulatory environment. With its local economy based on a major currency (GBP), and its close proximity to the UK and Western Europe, we are confident the cooperation with Jersey will not only benefit the local economy, but also form a strong operational foundation for our expansion into the rest of Europe.
Binance signed a Memorandum of Understanding with Digital Jersey to make Jersey a blockchain hub. Binance is currently providing training and support to Jersey’s blockchain ecosystem. Additionally, Binance will direct $1 Billion from its venture fund to support local startups.
It is an essential step for Binance as it is trying to overtake Coinbase, the world’s largest fiat-to-crypto exchange. Coinbase dominates this category in the EU region, and they now have direct competition. Binance could give Coinbase a run for their money because they are known for offering their services at competitive rates. However, Coinbase’s primary market is still the US, and CZ has made it clear that it is a market they’re interested in.
Crypto-to-fiat is an important aspect of trading as it offers users the option to enter and exit the crypto markets as and when they like. Also, crypto-to-fiat exchanges are where new investors enter the crypto market.
In terms of fees, Binance Jersey has a trading fee of 0.1% and a low crypto withdrawal fee. However, depositing and withdrawing GBP, it is 7GBP and 20GBP respectively. With Euro, it is 8EUR for deposits and 20EUR for withdrawals. This fee is very high when compared to Coinbase which offers free deposits and withdrawals for €0.15 in the EU and £1 in UK.
Apart from Europe, Binance previously launched fiat exchanges in Uganda, Singapore and Liechtenstein in partnership with LCX. Binance hopes to expand its fiat exchange across Africa.
Last modified: March 4, 2021 2:30 PM